The administration of the US President Donald Trump is preparing new sanctions against Russiaʼs shadow fleet of tankers that transport Russian oil.
This is reported by the Financial Times (FT), citing sources in the White House.
According to the publication, the US Presidential Administration is considering imposing additional sanctions against the Russian shadow fleet if Putin does not agree to a ceasefire in Ukraine by August 8.
Such sanctions against the shadow fleet are seen in the US as a first step towards inflicting damage on Russia. If the US does add the tankers to the sanctions list, it would be the first restriction against Russia since Trump returned to the White House in January.
Trump has so far refrained from imposing new sanctions, hoping for an agreement to end the war. However, he has repeatedly said that he is dissatisfied with the actions of Russia and Putin. The US president has set a deadline of August 8 — if there is no ceasefire, the US will impose "tough sanctions".
The Kremlin has repeatedly ignored the deadlines set by the US president and has stepped up attacks on Ukraine in recent weeks, the FT writes.
New US sanctions against the shadow fleet could reinforce EU restrictions that the bloc imposed in July, according to Kevin Book, research director at ClearView Energy Partners.
What is known about the Russian shadow fleet?
In early December 2022, the G7 members, as well as Australia and the EU, imposed price caps on Russian oil, setting a maximum price of $60 per barrel. From February 5, 2023, these countries imposed price caps on Russian petroleum products: $100 for diesel fuel, $45 for various lubricants.
To circumvent oil sanctions, Russia has begun building a shadow fleet. This is a fleet of old tankers that turn off their beacons so they cannot be seen by surveillance systems. These tankers are mostly operated by the Russian state-owned company “Sovcomflot”.
According to The Guardian’s September 2023 estimates, Russia’s shadow fleet consists of approximately 600 vessels, providing 70% of Russia’s oil exports and approximately 10% of the world’s “wet cargo” fleet. With its help, the Russian Federation transports almost 1.7 million barrels of oil per day, which brings large profits to the Kremlin.
In the EUʼs 18th sanctions package, adopted on July 18 this year, the bloc lowered the price of Russian oil to $45 per barrel. The United Kingdom also joined the decision.
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